Stock futures rose on Tuesday morning after the Nasdaq Composite posted its best daily performance since July.
Futures linked to the Dow Jones Industrial Average gained 432 points or 1.43%. S&P 500 futures rose 1.65% and Nasdaq 100 futures rose 1.85%.
The moves came after a winning day on Wall Street. The Dow Jones Industrial Average rose about 550 points, after a week of volatile trading. The S&P 500 also rose 2.65% on the day. The Nasdaq rose 3.43% as tech stocks rallied, led by names such as Amazon, Meta Platforms and Microsoft. It was the best day for the tech index since July 27.
Strong earnings reports lifted stocks. Bank of America rose 6.06% after better-than-expected results, and Bank of New York Mellon gained 5.08% after beating its own earnings.
In addition, another pivot from the UK strengthened the markets. Jeremy Hunt, the UK’s new finance minister, announced on Monday that he would roll back almost all of the announced tax cuts and withdraw an energy subsidy.
Investors are waiting for any sign that the stock market has bottomed out and the new rally may be the start of a new bull cycle. However, analysts aren’t so sure the bottom is in, and many see more pain ahead.
“I think this is going to be one of those bear market manifestations where people are scratching their heads,” Guy Adami, director of advisory at Private Advisor Group in Morristown, New Jersey, told CNBC’s “Fast Money.” and added that the markets. they are not far out of the woods when it comes to the bear market.
There are more big bank wins on deck. On Tuesday morning, Goldman Sachs will report its quarterly results. Johnson & Johnson, Netflix and United Airlines will also announce results today. Later in the week, Tesla, IBM and American Airlines report.